Mon, 11 Apr 2011 00:00:00 +0200

Yen Falls To a 11-Month Low against the Euro

The yen fell to an 11-month low against the euro and a 2- year trough versus the Australian dollar in overnight trading on Monday, and stayed on a weakening trend as investors piled into carry trades in favor of higher-yielding assets. The yen has fallen sharply in the wake of joint yen-selling intervention by the Group of Seven industrialized nations in March. The G7 stepped in after the yen hit a record high of 76.25 yen to the dollar on March 17, propelled by speculation that Japanese investors would repatriate their overseas assets after a massive earthquake and tsunami struck Japan's northeast on March 11. As for this week, traders are advised to follow the Japanese equity market, as the yen is highly affected by its movements. Special attention should also be given to the Monetary Policy Meeting Minutes scheduled for today, as its release is likely to have a significant impact on yen trading.

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